Before investing in a mutual fund, investors tend to assess the past returns of that scheme and compare the same with those of other schemes in the same category.
Aside from past returns, investors are also recommended to evaluate other factors such as the category which the scheme belongs to, reputation of the fund house, whether the scheme is active or passive, and the overall market scenario at the time of investing.
The past returns of a mutual fund may give a fair idea of how it may perform in the future. For example, if a scheme has demonstrated exceptional performance in the past, it may now be trading at a premium, and therefore, has a lower potential of growth.
And conversely, if the valuation of an equity fund has declined in the recent past, there could be a growth opportunity in the near future.
Here we list out the top performing flexi cap mutual fund schemes.
What are flexi cap mutual funds?
Flexi cap mutual funds refer to the schemes which invest a minimum of 65 percent of assets in equity and equity-related instruments. This is the newest category of mutual funds announced via a Sebi circular dated Nov 6, 2020 — wherein the markets regulator mentioned that these schemes have complete discretion to invest across large cap, mid cap and small cap stocks.
They are different from multi cap funds which are mandated to keep the minimum ratio of 25 percent in each of the three categories i.e., small cap, mid cap and large cap stocks.
(Source: AMFI; five-year-returns as on Feb 7, 2025)
As we can see in the table above, Franklin India Flexi Cap Fund gave 20.51 percent in the past five years. The highest return was given by Quant Flexi Cap Fund which delivered 29.73 percent return whereas Parag Parikh Flexi Cap Fund gave 23.44 percent annualised return in the past five years.
In terms of the size of the fund, largest flexi cap scheme is Parag Parikh Flexi Cap Fund with AUM of ₹90,681 crore followed by HDFC Flexi Cap Fund with AUM of ₹67,038 crore.
It is noteworthy to mention that the past returns do not guarantee a scheme’s future returns. In other words just because a scheme has given exceptional performance in the past, it does not necessarily mean that it will continue to give the same performance in the future as well.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision